As share prices slide and deep concerns surround high street banks like HBOS and Royal Bank of Scotland, the 60-plus generation is cashing in on the bricks and mortar 'lifeboat' that has propped up household finances all their lives.

Data specialist Moneyfacts.co.uk reports that the number of equity release products for older people keen to spend some of the £730billion locked up in their homes has jumped nearly 50 per cent since Christmas-from 43 to 60.

This is at a time when the number of mortgage products for people trying to buy a home fell sharply - leaving many unable to remortgage when fixed-rate loans expire.

David Knight, at Moneyfacts.co.uk, said: "The importance of equity release to an ageing UK population struggling with inadequate pensions has been heralded for along time.

"When you have been building up wealth in your home over 30 years, a monthly fall of 0.5 per cent isn't too serious," he says.

"You just want to find money for gas bills and council tax."

The UK Equity Release Market Monitor from specialist financial advisor Key Retirement Solutions actually shows £390million released from bricks and mortar in the second quarter to June 30, taking the total to £680m for the year so far.

Although the number of plans taken out so far in 2008 is slightly down on 2007, the total amount unlocked is ahead by a small margin - from £667m in the first half of 2007.

Three out of five equity release mortgages are now taken on drawdown terms whereby owners borrow a minimum £10,000 at a rate fixed forever - currently as low as Norwich Union's 6.05 per cent - and collect further tranches later if needed, which will be charged at a different rate.

At the cheapest current rate, £10,000 borrowed becomes a debt of £35,986 in 10 years and £64,751 in 20, with interest rolled up into a debt to be recouped when the property is eventually sold. No wonder lenders like lending to older folk: there can't be a default, because there are no monthly repayments to collect.

"The average age for taking out an equity release plan is 68, the average loan around 24 per cent of property value," says Dean Mirfin from Key Retirement Solutions. "People take a view on what they need and aren't really deterred by falling prices.

"Nobody knows how long house price falls will last, but people have plans and want to get on with enjoying retirement."

The equity release figures underline that drastic changes can be expected across the entire sector of retirement income, at least for those in the private sector.

Unlike public sector workers on final salary pensions bankrolled by taxpayers, many private sector workers simply won't have saved enough at 60 to rely on an old-style pension annuity to keep them comfortably in their dotage.

"A new 'third age' is emerging with people often semi-retiring at 50 and fully retiring at 70," says Shaun Crawford, head of UK insurance at accountants Ernst & Young.

"It's clear life and pensions providers need to develop new distribution models to provide consumers with a range of suitable products and services."

Crawford says that in 2012 the number of state pensioners - some 12.2m - will top the number of children in the population for the first time.

Equity release is only apart of a new strategy that will be needed to keep them comfortable. Right now, many are suffering: the Alliance Trust Research Centre reckons inflation is more painful the older you are. The over 75s, hit hardest by rising energy bills, are facing an effective inflation rate of 5.4 per cent.

For 30-49 year olds, the inflation rate is 4.2 per cent - and for under-30s, it's only 3.8 per cent. Amid fears of a re-run of the 1930s recession, the falling values of big banks, house builders, and even British 'blue chip' firms like Marks & Spencer and Prudential suggest that many relying on DC (defined contribution) pensions could suffer a sharp drop in retirement income.

"People see the FTSE dropping like a stone, but too many people are talking up this crisis irresponsibly," says Frank Cochran at Wolverhampton-based financial advisor FSC Investment Services.

The message from the markets is that the gloom might not lift until 2010 at the earliest.

How are older folk on limited resources likely to manage their path through a prolonged downturn?

The financial advisor website Unbiased.co.uk says they should start by claiming all the benefits to which they are entitled.